Gear up and SRR: Difference between pages

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imported>Doug Williamson
(Create page. Sources: Linked pages & i News webpage https://inews.co.uk/news/uk/cancellation-of-x-trail-production-sends-shock-wave-down-nissans-uk-supply-chain/)
 
imported>John Grout
m (To substitute an A for the C in FDIC to refer to the Act not the body)
 
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'Gearing up' refers to increasing the levels of financial or operation gearing - or both - within an organisation.<br />
Special resolution regime.
The intention of gearing up is to improve expected net results.  <br />
A consequence of gearing up is normally to increase risk, and the cost of equity capital.


Provisions for [[resolution]] of failing financial institutions under appropriate legislation and regulation. In many countries provisions extend beyond banks to certain other types of institution.


Many financial disasters have been a consequence of gearing up (or leveraging) excessively in this way in earlier periods.
For example, in the US under [[OLA]] and [[FDIA]] that established [[FDIC]] and in the EU under the [[BRRD]].
 
 
:<span style="color:#4B0082">'''''Nissan X-Trail to be manufactured in Japan, not UK'''''</span>
 
:'While Nissan’s decision to keep X-Trail production in Japan will have no immediate effect on jobs in Britain, it represents the cancellation of increased capacity in Sunderland and the creation of a so-called “super site”, which local component makers had been gearing up to supply.
 
:Mike Matthews, former managing director of Nifco, an automotive parts manufacturer based in Stockton-on-Tees which supplies makers including Nissan, told i: “The Nissan announcement will be a big disappointment. When X-Trail was originally announced, it was big news. There hadn’t been a new model announced in the UK in around 20 years."'
 
:''i News, 4 February 2019.''
 
 
==See also==
* [[Balance sheet ratio]]
* [[Cost of equity]]
* [[Gearing]]
* [[Guide to risk management]]
* [[Leverage]]
* [[Leveraged takeover]]
* [[Supply chain]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 11:07, 13 August 2014

Special resolution regime.

Provisions for resolution of failing financial institutions under appropriate legislation and regulation. In many countries provisions extend beyond banks to certain other types of institution.

For example, in the US under OLA and FDIA that established FDIC and in the EU under the BRRD.

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